Congress has lifted some limits on how much you can deduct your charitable contributions from your taxes this year, when those contributions are made to hurricane relief efforts.
This may allow you to greatly reduce or even eliminate your federal income tax by making large donations to such charities, something that is not usually easy to do.
Ordinarily, the law limits how much of your charitable donations you can deduct to a percentage of your Adjusted Gross Income (20%, 30%, or 50% depending on the nature of the donation). Also, this deduction is an “itemized” deduction, and is subject to limits on how much of such deductions you can take. The new law removes those two limits for certain types of charitable donations.
To qualify for the provisions of this new law, the donations must be made to an organization involved in hurricane relief efforts in the disaster areas proclaimed in response to hurricanes Harvey, Irma, or Maria.